Creditor Suit

Creditor_Suit Remedy CdCreditorSuits

A creditor suit (or sometimes creditor's suit) is usually an action that is brought by a creditor against a third-party who has possession of an asset of the debtor, but the third-party does not hold title to that asset. For instance, where the debtor has left his car with a mechanic for repairs, and the mechanic will not turn the car over to the creditor to satisfy the judgment, the creditor would bring a creditor suit against the mechanic to obtain possession of the car.

Another place where a creditor suit can be used is where a third-party has not obeyed another creditor remedy. For instance, creditor levies on the debtor's account at Bank. After receiving the creditor's levy, Bank allows debtor to withdraw funds. Bank is liable to creditor on a creditor's suit for the amount of funds withdrawn by the debtor.

Creditor Suit Topics And Opinions